looking for capital to expand my sports and entertainment promotion company
DREAMZ
BUSINESS PLAN
PREPARED BY:
Donneyelle Thomas
&
Dwayne Denham
7251 Theodore Dawes Rd.
Theodore, Alabama 36582
4436291274
I. EXECUTIVE SUMMARY
DREAMZ (referred to here on as the “Company”) is intended to be established as a Limited Liability Company at 7251 Theodore Dawes Rd. Theodore, Alabama 36582 with the expectation of rapid expansion the Adult Entertainment industry. The Company solicits financial backing in order to be able to introduce its new service. (described below)
Business Description
The Company shall be formed as Limited Liability Company under the Delaware state laws and doing business as a foreign entity in Alabama headed by Dwayne Denham and Donneyelle Thomas.
We have over 40 years of experience combined in this industry. We currently have the most successful boxing promotion company in the Delmarva area. Mr.Denham has personal relationships with some of the biggest name celebrities in Boxing, UFC, NFL, and NBA.
Management Team
The Company has assembled an experienced management team: Owner - Dwayne Denham, 15 years of experience in this industry, started from the ground up as a doorman then went from Head of Security to a Manager before becoming an investor and part owner of a Gentleman’s club prior to this venture. Co-owner – Donneyelle Thomas, 25 years of experience in this industry, worked in 25 different states as an entertainer before becoming a manager, house mom and part owner of a club prior to this venture.
Business Mission
Our goal is to make DREAMZ an experience of a lifetime by having the highest quality, safe, upscale social environment possible. Our goal is to make every experience here pleasant, professional, and very memorable. We will strive to run a clean respectful establishment with great vibes and outstanding hospitality. Everyone loves Hooters…just imagine Hooters on steroids. DREAMZ will not just be a place for locals to come enjoy the game and share a few laughs and intellectual conversations. We will have a state of the lighting and sound system. Our facility plans to have live music, comedy shows, and other events. We will have some of the best food and showcase signature meals from some of the best cooks in the south. We will bring some of the best dancers from all over the world to put on a show. Our vision is to create an unmatchable establishment that puts Mobile on the map and brings tourists from everywhere.
New service
The Company is prepared to introduce the following service to the market:
Adult entertainment: The club will have 2 sides. One side will be non-smoking with a full kitchen and bar. The kitchen will serve both sides. The entertainers will perform topless on stage, in lap dance and VIP rooms. The other side will be B.Y.O.B and allow smoking. We will offer cigars and hookahs. Our liquor license will allow give us the option to serve alcohol 24hrs a day from time of opening Sunday until Saturday at 2am. The license will also permit to sell alcohol as packaged goods except for Sunday to supply BYOB side. We also have option of allowing 18yrs and up
II. BUSINESS SUMMARY
Industry Overview
It has been analyzed that the Gentlemen’s club industry is in a mature stage of its economic life cycle, Gentleman’s clubs will experience relatively constant demand. Although changes in consumer spending and behavior can create fluctuations from time to time, demand in the industry will sustain overtime. Despite previous covid predictions of this industry not bouncing back to pre-covid revenue, experts now say due to the pent-up demand and renewed customer spending they expect overall revenue to increase. According to the IVA, that measures the industries contribution to economy, its contribution is expected to grow annually by .05%
Startup Expenditure
· $18000 Building/ lease deposit PAID
· $3000 cost of obtaining LLC, EIN, tax accounts PAID
· $6600 rent since 10/21 PAID
· $6000 rent 10/21 PAID
· $30000 architect PAID
· $5000 licenses and permits PAID
· $5000 insurance PAID
· $7000 utilities 1yr plus deposits PAID
· $870000 construction ($377K PAID)
· $60000 lighting and sound ($12K PAID)
· $125000 kitchen equipment
· $20000 tables, chairs, couches
· $10000 dishes and cookware
· $20000 alcohol and food
· $10000 logo design and sign
III. SWOT Analysis
We know that our unique business structure will set us apart from the industry standards that cannot be reached by our competitors.
· Strength
Our strengths include the inside knowledge our founders have obtained over the years, experiencing the various aspects of this industry, in various the different states. This has given us the unique perspective and insight on creating an environment that will set us apart from our competitors. Our topnotch security will provide a safe and secure establishment for us to employ the best dancers and staff that will deliver excellent detailed customer service and entertainment.
· Weakness
The time it will take us as a new establishment to develop a cliental base could weigh on our financial growth with in the first year as with any new ventures.
· Opportunities
In a thriving and upcoming place like Mobile, there are many opportunities, people are just waiting for something new. Similar to New Orleans, it’s one of the oldest homes of the Mardi Gras celebrations. The casinos in Biloxi are hour away and there are talks of turning the dog track across the street from us into a casino. Amazon has a location a mile away with 7500 employees. Cruise lines, commercial fishing and oil companies use The Port of Mobile. Mobile is also home of the Sugar Bowl. There was just a concert for Morgan Wallen the sold 30,000 tickets and afterwards people were looking for something to do.
· Threat
Unfavorable policies,
IV. Market Trend
Strip clubs are a 6billion dollar industry. Small BYOB clubs can make $5-10K a week while the larger metropolitan clubs can make $60-$80k in a night. The key to a successful gentleman’s club is to have: tight security, because everyone wants to be safe: a mature management staff that is familiar with various types of transactions that are made in this industry, from alcohol sales to valet and everything in between; warm and friendly hospitality from above average dancers and professional staff; reasonably priced drinks. Alcohol sales can bring 150-400% gain so it is important to manage the percentage cost “PC”. Standard “PC” are: 17% liquor, 23-25% bottled beer, 21- 22% draft, 30% wine, and 6-8% soda.
Market Analysis
There is one club that is near our location and one other an hour away. We will have an advantage over our competitors because they have limited space. They also do not have the ability to offer the things we can due to different laws and regulations in their area.
Target Market
In this new age these types of clubs have a wider variety of prospective customers. Our target market will include anyone with expendable income
· Men and/ or Women with income of $50k or more
· Single Young Business Professionals
· Married Men
· Married Couples
· Bachelors
· Bachelorettes
· Students
· Tourists / Vacationers
Marketing Strategy
· Radio advertisements
· Social media advertisement
· Word of mouth
· Mobile party units
· Street team/ flyers
· Promotional pricing and giveaways
· Event sponsoring
Sources of Income
· Alcohol- 150-400% gain
· VIP rooms - $50 /15min, $75/ 30min, $100/hr
· Dance fees $10-15 ea
· House fees 10-60% 0f what dancer makes
· Promotional items- branded material
· Retail dancewear
· Cover Charges $10-30 per person
· Membership fees $100-1000
· Exchange fees- 10-20% of transaction
· Withdrawal fees $10 per transaction ($200-500 limit)
· Food
· Valet
· Cigars
· Hookahs
· Parties
· Party bus /transportation
V. Financial Plan
12 month Profit and Loss Projection
Monthly expenses for salaries and overhead $15,000
(projected)
Revenue and sales for first year $400,000
(projected)
Gross profit for first year $220,000
Revenue Forecast
· First year-: $300- 500k
· Second year -: $600-800k
· Third year-:$800k-1 million